Business
Option to acquire Touro Copper Project interest
Option to acquire Touro Copper Project interest.
About this update from Atalaya Mining Copper Sa
[{"type":"text","content":"\n \nRNS Number : 6097X Atalaya Mining PLC 23 February 2017 \n\n \nAtalaya Mining plc (\"Atalaya\" or the \"Company\")\nExercise of option to acquire interest in the Touro Copper Project (\"Proyecto Touro\") in Spain\n \nAtalaya (AIM: ATYM, TSX: AYM), the European mining and development company, announces that it has exercised an option to acquire 10% of the share capital of Cobre San Rafael S.L., (\"CSR\"), a wholly owned subsidiary of Explotaciones Gallegas S.L. (\"EG\"), part of the F. GOMEZ Group. This is part of an earn-in agreement (the \"Agreement\"), which will enable the Company to acquire up to 80% of CSR.\nAcquisition Rationale\nAtalaya is focused on creating a portfolio that combines producing, development and exploration assets. By acquiring an initial 10% of CSR, the Board of Atalaya sees this Agreement as a low risk first step in creating a growth portfolio to complement Proyecto Riotinto, which is now fully operational.\nBackground\nProyecto Touro is located about 27 km east of Santiago de Compostela in northwest Spain. It was operated by Riotinto Patiño from 1973 to 1986 using open pit mining followed by copper flotation. Infrastructure is in place, including high voltage power and a road network providing access to an international airport and a number of deep-water ports.\nIn July 2015, the Company secured an exclusivity agreement. Since then it has been working with its consultants to evaluate the viability of the project. The Company has carried out significant drilling, resource evaluation, mine planning, metallurgical test work, plant engineering and other auxiliary studies required to fast track the project to feasibility stage ahead of permitting.\nThe Company's evaluation of the results to date has confirmed and expanded the resources identified by previous owners. As the project has been a past producer, the orebody is well understood and exhibits straightforward metallurgy, reporting good copper recoveries and clean concentrates.\nDrilling has confirmed a significant resource that remains open in several directions. The deposit is amenable to open pit mining in shallow pits. Capital expenditures are expected to compare favourably with copper projects globally, as was the case at Proyecto Riotinto.\nPhased Earn-in Agreement\nFollowing the acquisition of the initial 10% of CSR's share ca...